The US dollar is up sharply since the Federal Reserve showed plans to raise interest rates three times in 2017 at yesterday’s meeting. The dollar is also getting a lift from fewer-than-expected weekly jobless claims. Investors are now waiting on two November manufacturing activity surveys set to come out this morning. Tomorrow morning’s building permits and housing starts will finish out the week for US data.
Across the Atlantic, the euro is falling against a stronger dollar despite solid business activity readings out of Italy, Germany, and the broader Eurozone. Tomorrow morning brings Germany’s wholesale inflation results and the Eurozone’s trade balance and consumer inflation data from November.
The pound is also down against a weaker dollar as the Bank of England announced it would hold interest rates steady, as expected. The UK’s stronger-than-expected retail sales for November is keeping the pound from suffering deeper losses this morning. Tomorrow’s industrial trends survey will finish out the week data wise.
To our north, the Canadian dollar is falling as oil prices tumble toward $51 per barrel and as October’s manufacturing shipment numbers unexpectedly contracted by 0.8% for the month (analysts expected 0.3% growth).
In the East, the Japanese yen continues to weaken and is approaching January lows as investors favor the stronger US dollar. The Australian dollar is also down against a rising US dollar despite last night’s stronger-than-expected November jobs report.
EURUSD: The euro is down against a stronger US dollar despite solid Eurozone business activity.
GBPUSD: The pound is also trading lower against the rising dollar as the BoE keeps interest rates steady.
AUDUSD: The Aussie dollar is down compared to its US counterpart despite last night’s upbeat jobs numbers.
USDCAD: The Canadian dollar is sliding along with oil prices.